Where Next? - Life Sciences
Where Next?
Life sciences sector remains resilient in the face of geopolitical turbulence and economic downturn. But the industry is still facing a lot of headwinds, particularly as it is struggling to find quality talent amid global skills crunch. What are some of the lesser-known life sciences investment destinations that offer access to smaller, but less competitive talent markets in Europe?
Toulouse, France
Toulouse, France
France is the second largest European producer of medicines, only falling behind Switzerland. More than 30,000 people are employed in the pharmaceutical industry in Paris and another 20,000 in Lyon regions – the two main centres of activity. However, other hotspots are emerging and are worth the investors’ attention. For example, Toulouse, which hosts one of the major offices of Airbus, is known as the European aerospace capital (and for its rugby prowess). But the city is also building solid credentials in the life sciences industry. Availability of skilled talent with lesser competition and support from both local and national governments are the two major drivers of growth. German biotech Evotec already employs 850 R&D staff in Toulouse and is building a biologics manufacturing facility there, expected to be operational by 2024-25. The company was able to tap into generous funding from the French government and its France-2030 programme, that allocates EUR 7.5 billion to support investments in “biomedicines and medical devices of tomorrow”. Pierre Fabre, a French multinational pharmaceutical and cosmetics company, employs 800 people in dermatology and oncology R&D within growing Toulouse cancer research centre.
Vienna, Austria
Vienna, Austria
Austria is comparatively smaller than neighbouring Germany and Switzerland in terms of life sciences industry clout and Vienna may not come to one’s mind as an obvious investment destination in the sector. This did not deter Boehringer Ingelheim from investing EUR 700 million in 2021 to launch a new biopharmaceutical production facility in Vienna, expected to employ more than 500 people. Takeda is building additional R&D capacity to expand its presence in the city to be operational by 2026. With solid academic and talent base to start with, the city is topping international quality of life rankings, which are crucial to draw and retain world-class talent. Besides the quality of human resources, Vienna offers good real estate infrastructure for businesses and residents alike. Compared to major European and global life sciences hubs, residential housing remains affordable and more accessible thanks to a unique social housing system and rental caps. For offices and commercial premises, one may look at, for example, aspern Seestadt – one of Europe’s largest urban development projects in the north-east of Vienna (240 ha and EUR 5 billion investment), just 20 minutes away from the city centre by public transport.
Maastricht, The Netherlands
Maastricht, The Netherlands
In the Netherlands, Leiden Bioscience Park is the largest in the country and one of the most successful life sciences clusters in Europe. Its credentials were reinforced in 2021 when Bristol Myers Squibb announced it will build a cell therapy manufacturing facility, expected to employ 500 people. However, amid growing shortage of industrial space and residential housing in greater Randstad region (Rotterdam-the Hague-Amsterdam), investors are looking elsewhere to find cheaper and less competitive locations. Dutch southernmost province of Limburg, nestled between Belgium and Germany and with its capital in Maastricht, is one attractive alternative. The region has developed competence in biotechnology and biomaterials, medical devices, health and nutrition. Three university hospitals (Maastricht in the Netherlands, Liege in Belgium and Aachen in Germany) are all within 20-km radius. Almost 60% of students at Maastricht University are international and tend to stay in the region after their studies. Average rental and purchase prices for residential property are 30-50% lower than in Amsterdam. Commercial property and a comprehensive range of investor support services are available in, for example, one of the four Brightlands innovation campuses in the region. Each offers a unique set of capabilities and industry focus. Brightlands Chemelot Campus (20 min away from Maastricht), for instance, is one of the largest integrated chemical industrial complexes in Europe, now looking towards fully circular production by 2050, focusing on performance materials and biomedical solutions.
